2015 Ford F-150 Plant Retooling Expected to Lower 2014 Profits

While Ford expects to turn a profit in 2014, the automaker is projecting a lower overall margin compared to 2013. The lower expected margins are due in part to model changeovers including plant closures required for retooling to build the new aluminum-intensive 2015 Ford F-150.

Ford expects to see an operating margin between 8.0 and 9.0 percent this year compared to last year’s 9.9 percent, where the automaker saw a net profit of $7.2 billion. In 2012, the automaker had an operating margin of 10.4 percent and had a net profit of $5.7 billion.Ford CFO Bob Shanks said on a conference call with analysts and reporters that the expected declines are "largely attributable to F-series," referencing the downtime needed to retool the automaker's plants.

Production at the Dearborn Truck Plant in Michigan will halt for 11 weeks, while the truck plant outside of Kansas City, Missouri will be shut down for two weeks (both shutdowns include the scheduled summer closures). With the Dearborn plant being shut down for a longer period of time, the Kansas City plant could be shut down again in 2015 to complete the changeover.

The automaker plans to introduce 16 new or refreshed vehicles this year including the redesigned 2015 Ford Mustang, which will officially be sold in Europe. All of these changeovers will contribute to production downtime. Ford will “expand its portfolio into new markets” as well as add capacity to meet demand to continue to grow its One Ford plan, the automaker said in a release.

“This year will be an important next step as we build an exciting, stronger growing business based on outstanding products that customers want and value around the world,” said Alan Mulally, Ford president and CEO, in a release.Source: Ford, Automotive News (subscription required)

If the f150 is as durable as Ford says it is ( dent resistant, rust resistant and great fuel economy). Imagine the resale value over the competition.once body shops transition over to aluminum tooling of course.